Bitcoin Surges Over 24% in a Week Amid Crypto-Friendly Policy Signals

Bitcoin's price surged over 24% in a week, breaking through $78,000 and marking its best single-week performance since March 2024. The rally accelerated following a series of crypto-friendly signals from Washington.

The U.S. Treasury announced it would at least double the size of its liquidity-supporting repurchase agreements for long-term Treasuries, improving liquidity expectations for risk assets.

A short squeeze occurred when shorts were forced to cover, creating a self-reinforcing upward cycle. Approximately $2.74 billion in cryptocurrency short positions were liquidated within 24 hours, marking the largest short liquidation event recorded on CoinGlass since 2021.